Facebook crushed analyst estimates

by Andy Huang / Wednesday, 27 April 2016 / Published in Options

Tech giant Facebook crushed analyst estimates when it reported first-quarter results on Wednesday.

The company reported adjusted first quarter earnings of 77 cents per share on revenue of about $5.38 billion. Analysts had expected Facebook to report earnings of about 62 cents per share on $5.26 billion in revenue, according to a consensus estimate from Thomson Reuters.

In fact, Facebook’s earnings per share figure was 10 percent better than the highest estimate of 41 Wall Street analysts.

Shares in the company jumped more than 9 percent in after-hours trading following the announcement.

If Facebook were to open at those levels on Thursday, it would easily exceed its all-time high share price of $117.59.

Lets take a look at the charts and see what they tell you.

This breakout & retracement will be super exciting for you option players. You can see 1,000% ranges up and down. Tomorrow being Thursday, the inflated premium should deflate giving you some good opportunity to load up on some cheap 1 to 2 strike OTM for this setup.

Facebook Q1 2016

For shorter time frame, use the four hours to manage your entry. Good luck, and catch a few home runs, buying some puts after the excitement settle will be very rewarding.